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Alexander Manufacturers Ltd has two service departments, Maintenance and Personnel. Maintenance Department costs of $346,942...

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Accounting

Alexander Manufacturers Ltd has two service departments, Maintenance and Personnel. Maintenance Department costs of $346,942 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $202,230 are allocated based on the number of employees. The costs of operating departments A and B are $208,000 and $312,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:

Maintenance Department

Personnel Department

A

B

Budgeted costs

$346,942

$202,230

$208,000

$312,000

Budgeted maintenance-hours

NA

842

1,203

682

Number of employees

50

NA

270

630

Using the step-down method, what amount of Maintenance Department cost will be allocated to Department B if the Maintenance Department cost is allocated first?

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